In a document sent to the Hanoi Stock Exchange (HNX), No Va Real Estate Investment Group Joint Stock Company (Novaland) said that it was forced to buy back the NVLH2123010 bond lot before maturity no later than March 17, 2025 due to not being able to complete the procedures to supplement the collateral.
According to Novaland's document dated March 4, 2025, as a representative of bondholders and an organization managing collateral 1, MB Securities Company (MBS) said that on January 10, 2025, MBS sent a notice requesting Novaland to supplement collateral for bonds because the collateral ratio decreased to below 100%.
As of February 10, Novaland has not yet supplemented the collateral as prescribed, so MBS continues to send notices of violations of the collateral ratio to Novaland. However, after 15 working days since MBS sent the notice of violation, Novaland still could not recover the property guarantee ratio to the prescribed threshold.
Therefore, MBS announced the bond lot to maturity on March 4, 2025. Novaland is obliged to pay principal and interest to investors within 10 working days, i.e. no later than March 17, 2025.
Novaland's failure to supplement collateral for the above bond lot occurred in parallel with the fact that this company was also slow to pay the principal and interest of two other bond lots also issued in 2021.
For the NVLH2123009 lot, Novaland must pay more than VND 803 billion, including VND 750 billion in principal and more than VND 53 billion in interest on February 12, 2025.
But in reality, the Company was only able to pay nearly 8 billion VND in principal. The remaining amount has not been paid with the reason of "not having arranged the source of money".
As for the code NVLH2123011, Novaland has only paid nearly 8.8 billion VND, out of a total of nearly 915 billion VND in principal and interest due on March 3, 2025.
On March 12, Duc Mai General Import-Export Investment Company, one of the three "owners" of the VND10,540 billion Sun City project, also announced a notice to postpone the maturity of the DUCMAI2020 bond lot, and at the same time change the collateral asset structure.
Accordingly, this bond lot will postpone the maturity date from December 22, 2025 to December 22, 2027. This is a bond lot issued on December 22, 2020, with an issuance value of more than VND 1,351.8 billion.
Duc Mai Company is a member contributing capital of Sun City Real Estate Investment and Development Company Limited - the unit that has just been approved as the investor of a VND10,540 billion real estate project in An Khanh ward, Thu Duc city.
Another notable case is that Ho Chi Minh City Service - Trading Joint Stock Company (Setra Corp) has just announced information about the delay in paying principal and interest of 20 bond lots.
As of the end of February 2025, Setra has delayed the interest payment of 20 bond codes from SET.H2025.01 to SET.H2025.20 with a total unpaid amount of VND 553.95 billion. The reason given is that the issuing organization has not yet arranged a payment source.
It is known that from March 2023 to present, Setra has repeatedly announced the delay in paying principal and interest for these 20 bond lots.
Credit rating agency VIS Rating estimates that in 2025, there will be about VND224,000 billion of maturing bonds; of which, about VND110,000 billion will be bonds in the residential real estate industry.
According to VIS Rating, of this total maturing bond volume, about 17% of the value of bonds with a risk of late principal repayment and 94% of the value of this risky bond come from the residential real estate and tourism and resort groups.
Currently, although the ratio of late-payment bonds to total outstanding bonds has gradually stabilized in the last three months, this is still a factor that needs to be monitored in 2025.
Notably, most of the bond payments that are late in September 2022 and last until June 2023 are expected to return and put pressure on issuers in the context of an average extension period of only about 22 months to a maximum of 24 months according to Decree 08/2023/ND-CP.
